Obama is at it again, making plans to “fix” the housing market. I definitely don’t think he’s on the right track, but at least he’s got an original idea. He wants to tackle the root of the problems instead of just the symptoms. Here’s how it breaks down:
The last generation used to buy houses pretty early on in their lives. Work hard right away when you’re young, save some money, buy a home. Simple and easy.
But nowadays: high school, college, student loan debt, high cost of rentals, no money for buying a home.
It’s a vicious cycle and definitely contributes to the lack of homeownership among the younger generation. You pop over to these guys and take out a loan. So Obama wants to try to make college more affordable (for a whole host of reasons) giving young adults a better shot at owning a home.
Here’s the problem with the plan though: it’s great to want to make college more affordable and saddle people with less debt early on. But I 100% do not think that it will improve the housing market very much if a ton of early 20’s with no viable income start buying homes.
What if they can’t make their payments? What if they find a new job and have to move right away? What if they’re not responsible with their home and drive down property values?
It’s just too risky. Homeownership is the dream of every American. But don’t think that throwing more people with a little more money into the mix is going to achieve some magical results. Let’s cut the nonsense for a change and see what solutions will really help make a positive change.
If you have some ideas or some more comments on Obama’s plan please write something below.